The Valens Company (CVE:VLNS) (OTCQX:VLNCF) has said it is teaming up with cannabis-focused consumer packaged goods company High12 to develop a line of premium vape products for the latter's new DAIZE brand.
The Kelowna-based firm has struck a custom manufacturing agreement with High12 and the pair expect to initially launch these products in the third quarter this year in Alberta, British Columbia, and Ontario, aiming to expand nationally thereafter.
"Our agreement with High12 is an exciting and strategic opportunity for Valens to partner with a recognized cannabis brand building company with a strong CPG marketing focus," Tyler Robson, CEO of The Valens Company said in a statement.
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"As we continue to diversify our product offering and expand our platform, we are further positioning our business as a one-stop-shop to industry marketing experts that launch cannabis brands which resonate with consumers on a global scale," Robson added.
Valens is the largest third-party cannabis extraction company in Canada with an annual capacity of 425,000 kg of dried cannabis and hemp biomass. It offers a wide range of product formats, including tinctures, two-piece caps, soft gels, oral sprays and vape pens as well as beverages, and natural health products. It has a strong pipeline of next-generation products in development.
The tie-up with High12 is for two years with successive one-year renewal options. The pair will also collaborate with vape solutions provider The Blinc Group to align with the DAIZE brand identity, the firm added.
"The procurement of customized hardware, and the development and manufacturing of the DAIZE brand portfolio of premium devices and 510 thread cartridges is expected to begin immediately," it said.
The Valens Company will leverage its relationships with premium suppliers, in addition to its in-house customized extraction and diverse terpene database, to develop the products. High12, meanwhile, will focus on partnerships, sales and data-driven marketing. The High12 agreement will follow a royalty payment structure based on a set of outlined quarterly targets, Valens added.
Shares ticked up 3.42% in Toronto to C$2.72 each.
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